Nasdaq has launched a MiFID II implementation program, which aims at efficiently introducing changes to core functionalities for its members and stakeholders. For Cash Equities trading on Nasdaq Nordic, the main elements impacted are:
Pre-and post-trade transparency requirements will expand to cover depositary receipts, ETFs, certificates and other similar financial instruments in addition to shares.
- On-exchange trade reporting (negotiated transactions waiver) and dark book trading (reference price waiver) will continue to be available but will be subject to volume caps (4% of the total EU trading volume of an instrument on Nasdaq Nordic or 8% of the total EU trading volume of an instrument across all EU trading venues).
- Iceberg orders (order management waiver) will have EUR 10.000 minimum value requirement.
- Non-displayed large orders in lit book (large in scale waiver) remain available with new MiFID II thresholds.
- New trade types will be introduced; e.g. the pre-trade transparency waiver used needs to be made public.
- Members will need to enter into market making agreements if they act according to MiFID II's market making definition.
- Nasdaq Nordic will provide additional incentives for stressed market conditions.
- Nasdaq Nordic plans to continue with current Liquidity Provider arrangements.
Other Market Structure Changes
- Additional pre-trade risk management (PRM) controls will be required. Nasdaq Nordic will continue offering the required tools.
- Minimum tick size regime will apply to shares and ETFs based on liquidity bands.
- Maximum order to trade ratios (O/T ratio) will be set to all instruments instead of current scope of shares. Current models will be updated to be MiFID II compliant.
- Nasdaq Nordic will provide the execution quality reports required by MiFID II.
- Members need to consider Trading obligation for shares.
- Nasdaq Nordic will offer an APA service for the publication of OTC trades. Learn more about our OTC Trade Publication (APA) solution
Members are encouraged to reach out to their Key Account Managers directly with any questions or concerns regarding MiFID II. You may also contact the Nasdaq implementation project directly via firstname.lastname@example.org
Updates will be published on this site and will contain news on service offerings and MiFID II/MiFIR implementation details as they become available.